Life Expectancy an Actuary Wanted to Develop a Model to Predict

question 49

Essay

Life Expectancy
An actuary wanted to develop a model to predict how long individuals will live.After consulting a number of physicians,she collected the age at death (y),the average number of hours of exercise per week (x₁),the cholesterol level (x₂),and the number of points that the individual's blood pressure exceeded the recommended value (x₃).A random sample of 40 individuals was selected.The computer output of the multiple regression model is shown below. THE REGRESSION EQUATION IS y = 55.8 + 1.79x₁− 0.021x₂− 0.061x₃ ​ S = 9.47 ​ R−Sq = 22.5% ANALYSIS OF VARIANCE ​ ​
-{Life Expectancy Narrative} Is there enough evidence at the 5% significance level to infer that the cholesterol level and the age at death are negatively linearly related?

Identify and overcome obstacles in reasoning and problem solving such as mental set, functional fixedness, and overconfidence.

Comprehend the concept of schemas and their application in understanding and interpreting information.

Understand the importance of creativity in problem-solving and the role of divergent thinking in creativity.

Recognize the role of metamemory and memory strategies in learning and memory recall.

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Definitions:

Units Sold

The total number of units of product that have been sold during a particular period.

High-low Method

A way to estimate the variable and fixed components of costs by analyzing the difference in costs between the highest and lowest activity levels.

Unit Produced

A measurement or quantity of goods manufactured during a specific period, often used to track production levels and efficiency.

Variable Cost

Expenses that vary directly with the level of production or sales volume, like materials and labor.